New York, NY – Grayscale Bitcoin Trust (GBTC) has experienced a remarkable shift as it recently recorded its first-ever inflow following a period of significant daily outflows. This turnaround marks a pivotal moment for the popular Spot Bitcoin ETF, which had been facing consistent outflows since its inception on January 11, 2024.
According to data from Farside, an investment management firm, Grayscale’s Spot Bitcoin ETF saw inflows of approximately $63 million on a single day, alongside other Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) which recorded inflows of $12.7 million. The total inflows for that day amounted to roughly $378.3 million, with Franklin Templeton’s Spot Bitcoin ETF, EZBC, leading with inflows of $102.6 million.
This surprising influx comes on the heels of a recent event where 10 US Spot Bitcoin ETFs, including BlackRock’s IBIT, collectively recorded enormous outflows worth over $563.7 million in a single day. These outflows were possibly influenced by the Federal Reserve’s decision to keep rates unchanged, leading to a broader downturn in the crypto market.
Grayscale’s turnaround has left experts like Bloomberg senior analyst Eric Balchunas in disbelief, prompting thorough verification of the unexpected development. The asset management firm had previously been plagued by daily outflows, with some attributing these outflows to factors such as its high annual management fee of 1.5% – the highest among all 12 Spot Bitcoin ETFs in the US.
Some of Grayscale’s outflows were also linked to reported selling connections with insolvent crypto exchange FTX and other defunct cryptocurrency companies. FTX had sold approximately $1 billion worth of GBTC, while Genesis, a cryptocurrency brokerage for institutional investors, had offloaded nearly 36 million shares in GBTC to purchase 32,041 BTC worth over $2.1 billion.
The recent positive turn for GBTC comes amidst a fluctuating Bitcoin market, with the cryptocurrency currently experiencing a 6.36% increase in the past 24 hours, trading above $60,000 support levels at $63,175. This significant development underscores the dynamic nature of the cryptocurrency market and the factors influencing investor sentiment and market trends.
